If things are going well for Walt Disney anywhere, it’s in the streaming segment. Even if the growth has been comparatively weak recently, we can still speak of a respectable success. After all, Disney + alone can boast more than 100 million active accounts around a year and a half after it was launched.
However, Walt Disney stock is not just dependent on growth in its streaming unit. The theme park segment is still extremely important for the operational turnaround. There could have been an important message here on Tuesday of this week. Let’s take a look at what Foolish investors need to know.
Walt Disney, the theme parks & the mask
Walt Disney and the theme parks are naturally suffering from COVID-19. This operationally high-turnover segment is still not where you want to be. Or can be. One thing in advance: It will stay that way for the foreseeable future. Nevertheless, there could be important relief for the visitors.
In the USA, and especially in the theme parks in Florida, there are relaxations for visitors. On the one hand, those who are willing can come from other states. On the other hand, the mask requirement is largely eliminated. Even if there may be a few situations in which face coverings are still everyday life, masks no longer have to be worn in queues, while driving and so on. That might be more important than we might initially think.
For Walt Disney, it’s not just about the Florida experience and the theme parks. No, but with the further relaxation a bit more normality, which, as a US fool headlines, could be a step towards full utilization. In addition, sales could increase if more outside visitors come. The hotel business and also consumption and thus the average turnover per user are likely to rise again. However, to emphasize this, the utilization remains at a maximum of 25% for the time being.
Still: It could get better!
For Walt Disney shares, however, improvement appears to be in sight. Perhaps more users come from outside with greater sales potential. Perhaps, however, higher capacity limits could be reached again in the future. Better times seem to be looming for sales.
The trend at Walt Disney is therefore pointing in a better direction. The fact remains, however, that this financial year 2021 is likely to continue to be associated with burdens. Does this also apply to the year 2022, which begins in the middle of autumn? Interesting question. Perhaps a relevant one if we want to estimate now how things will go with the shares of the US media and leisure company.
The article Walt Disney: Milestone for Amusement Park Business Stock? first appeared on The Motley Fool Germany.
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Vincent owns shares in Walt Disney. The Motley Fool owns shares of and recommends Walt Disney.
Motley Fool Deutschland 2021
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